Monday 28 February 2011

UK banks reduce property lending by £17.2bn - Telegraph

State-backed lenders Royal Bank of Scotland and Lloyds Banking Group, the two largest European commercial property lenders, cut loans by a combined £14.5bn, stated Bloomberg. HSBC and Barclays reported a drop of £2.7bn pounds. The four banks lent £199bn between them, according to financial statements published this month.

Indicating that they are possibly moving money out of property, predicted in the us quite a while back, and into investments that are perceived as less risky right now with more positive returns, and then they will gradually begin to move money back into the property field as the economy begins an upswing of growth again, not expected for a while.

“Squeezed middle” facing perfect storm as share of national wealth declines

“The task for the future is to build a different sort of economy; a high-quality economy with quality jobs and a better quality of life. That means good jobs at good wages for middle and lower-income families. And a tax and benefit system that supports families with children, not one which is increasingly skewed against them, as we see under this government.”

It is almost like the 500 pound elephant in the corner of the room.
The actual financial reality for many lower income and middle class income defined by this article, is that they are finding things increasingly hard.
Normal, well educated people are under considerable financial stress, uncertainty about the future, and concerned about keeping and getting jobs able to support their lives now, and also to create a future for their families.

Sunday 27 February 2011

HEARD ON THE STREET: Dark Days Are Ahead for U.K. Property - WSJ.com

It is the reason why the U.K. banking sector still has £243 billion ($391.69 billion) worth of outstanding U.K. commercial real-estate loans, mostly backing low-quality "secondary" property, and more than half of it maturing in the next three years. Provided borrowers could still pay interest, banks were happy to extend loans, postponing major write-downs.

But rolling may no longer be such an attractive option.

This reminds me of the debacle that actually occured in the us, when the banks started to pull their mortgage products, and people who had been relying on refinancing balloon payment, interest only loans, were caught out, because the mortgage products they expected to be there were gone, and they could not afford to pay for the house they had purchased.
Jobs became scarce, house prices plummeted, and one could see that it would be difficult to sell their homes in a market that was falling.
One property investment advisor said that one of her mortgage friends had eight mortgage products available him to present to clients, his company pulled all but two of them, he was left holding the baby, and so were his homeowners.
Who knows what willl happen in the UK.

The Victorian B&B: What the butler saw - Telegraph

When the house had been split into flats, fireplaces had been removed, rooms had been sub-divided and metal windows installed. Over seven years Brown undid all of this: antique fireplaces were bought and installed, windows replaced and rooms restored to their original proportions. An off-white decor was dramatically re-imagined as Brown devised a new scheme based on his remarkable collection of royalty-themed photographs and paintings.

The collection started 35 years ago with a signed photograph of Queen Alexandra that Brown bought at Sotheby’s. It was the beginning of a passion for photographs of Queen Victoria and her progeny; there are now more than 100 around the house, and these form the unifying theme of its decor.

About five years ago Brown opened his house as a B&B and has arranged the rooms to suit this purpose. In the substantial hallway he sacrificed a small loo behind the staircase to make room for a butler’s pantry. 'Running the B&B is very similar to my previous role as a butler, where I would serve in the dining-room and more or less keep out of the way in the butler’s pantry,’ he says. 'At least this one has a view – it overlooks the garden. It’s funny that even now I have my own house, the old routine has re-asserted itself.’

To the left of the hall is a dining-room where an imposing gilt-framed portrait of Kaiser Frederich III, a crystal chandelier, a black marble gothic fireplace and Watts of Westminster wallpaper establish the sumptuous tone that continues throughout the house. To the right is the drawing-room, where a busy floral wallpaper (Ralph Lauren 'Camilla’) sets the scene for a grand piano and upholstered furniture. Lamps with tassel-trimmed shades include a lace lampshade that Brown bought at an attic sale at Syon Park, the London home of the Duke of Northumberland.

In the basement, Brown’s previous flat has given way to two bedrooms, which are less sumptuously decorated than the ground floor, but Brown promises that they will eventually receive the same treatment. In one of these rooms a striking stained-glass window by Walter Pearce depicts a knight and lifts the room out of the ordinary. A functional kitchen adjoins the sitting-room, and beyond that is a large, simple conservatory.

Brown’s own quarters are upstairs, a large space where a sleeping area is kept separate from a small sitting-room, kitchenette, bathroom and desk. An oak screen creates the division; its panels contain photographs by Francis Frith (the Victorian photographer who took pictures of all the counties of Britain) of many and varied scenes. The wall behind the Edwardian bed (made by Brown’s great-uncle) is layered with wallpaper, a Victorian throw bought in Berlin used as a wallhanging and framed pictures of Brown’s great-grandmother and the Grand Duchess of Baden. As everywhere else in the house, there is an air of authenticity, right down to the light switches.

Saturday 26 February 2011

Overview - Buy to Let | ARLA

Buy To Let is the initiative devised by the Association of Residential Letting Agents (ARLA) and supported by the leading Buy To Let mortgage lenders including Mortgage Express.

Buy To Let is designed to stimulate the growth of the Private Rented Sector by encouraging private investors to take the opportunities given by low, highly competitive, interest rates and the reasonable certainty of sustained capital growth over the coming years.

Ten tips for buy-to-let | This is Money

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# Home
# Mortgages & homes
# Buy to let
Ten tips for buy-to-let
Simon Lambert, This is Money
Updated:
10 January 2011, 3:53pm
Reader comments (23) |Quiz | Deals | Calculate | Blog

Poor old buy-to-let. Once upon a time it was David Beckham, Wayne Rooney and Kate Moss all rolled into one – making headlines on a daily basis with every move endlessly analysed.

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THE BUY-TO-LET-TEST
Question mark It's vital to ensure your property can be a sound investment.
- Buy-to-let test

Buy-to-let is no longer the hot property it once was, and many investors who bought in recent years struggled as mortgage rates rose.

Existing investors should now be benefitting from lower rates, after the base rate was slashed, if they have fallen on to their lender's standard variable rate.

This is especially true for many as a lot of buy-to-let deals do not have typical SVRs but a revert rate that tracks the bank rate.

However, new mortgage deals remain expensive and industry experts acknowledge that now is a tough time for buy-to-let.

But with property prices having fallen to more affordable levels, those who stick to the tried and tested method of investing for rental returns rather than capital growth are tempted.

If investors are willing to accept that the value of their property may slide in the short term, and ensure their property meets the criteria of at least 75% to 85% loan-to-value and returning 125% of monthly mortgage payments then it can continue to be a good long-term investment.

Like any investment, buy-to-let comes with no guarantees, but for those who have more faith in bricks and mortar than stocks and shares here are This is Money's top ten tips:

Read more: http://www.thisismoney.co.uk/buy-to-let-tips#ixzz1F6FDizuH

Friday 25 February 2011

Helping Innovate Property (HIP) - Blog, Housing Market News and Articles

How landlords can make the most of the market in 2011

January 26th, 2011 HIP-Consultant.co.uk Posted in Guest Articles, Landlords | 1 Comment »

Professional property landlords can look forward to seeing solid returns from their investments in 2011.The state of the housing market is pushing increasing numbers of people into renting while supply remains tight.

Read the rest of this entry »

Helping Innovate Property (HIP) - Blog, Housing Market News and Articles

Conditional Exchanges, Options to Purchase and Rights of First Refusal

February 21st, 2011 HIP-Consultant.co.uk Posted in Property Conveyancing, Property Market | No Comments »

The majority of the time when you are selling a property or when you find one you want to buy, you will want to exchange and complete as soon as possible. This won’t always be the case though. It might be that you want to reserve the right to buy a property at some time in the future, or that you want to give yourself the option to escape the contract if certain conditions are not met.

Read the rest of this entry »

Thursday 24 February 2011

BBC NEWS | Business | Buy-to-let landlords 'hit harder'

Buy-to-let landlords are losing their properties at over three times the rate of other homeowners, research shows.

Council of Mortgage Lenders figures show 1,700 buy-to-let properties were repossessed by lenders in the first three months of this year.

But landlords lost 4,100 properties when cases of lenders appointing a receiver of rent are included.

A receiver of rent collects rent on behalf of a lender when the landlord defaults on the mortgage.

The recession is also making buy-to-let mortgages much harder to come by.

buy to let mortgages | buy to let mortgage rates | compare buy to let mortgages - Moneyfacts.co.uk

News tonight said buy to let mortgages were starting to fall behind in terms of payments late last year.

Wednesday 23 February 2011

Buy To Let Mortgages | Mortage Deals | Mortgage Advice

The condition of the housing market is one of struggle and slow recovery. Buyers are either shut out of the market due to cost or they cannot raise the capital to purchase. The number of buyers on the market has fallen and it will likely continue to fall as inflation increases, tax increases and many lose their jobs and public benefits due to government spending cuts. Without buyers, especially first time buyers to boost others upward on the property ladder, homes remain on the market without buyers and that further pushes house prices down.

Lower house prices, constricted lending, low demand from buyers, more houses coming to the market, and a possible interest rate hike by rate regulators on the way and it doesn’t look like there will be a boost in the housing market anytime soon. These same conditions are what will push the buy to let market upward. More and more investors are entering the buy to let market, even some are going to countries where prices are even farther down than in the UK.

Would be home buyers can only turn to living with others or to rental property when buying is out of reach. The demand on rental property has been tremendous of late. Supply has dwindled especially for quality rental properties and top money can be asked for those properties. Rental demand is expected to be high throughout the rest of 2011 and even into 2012.

There are however some down sides to the buy to let market. The financial crisis that has caused repossessions and an increase in mortgages going into arrears has also caused many landlords to do without expected rental income. Many landlords report a problem with renters being behind in their monthly rental fees.

Still there are many entering the buy to let market and it appears there will be plenty of demand to warrant more investors bringing rental properties in to fill demand. In fact homes that were hoped to find first time buyers are being purchased as a buy to let property. Many homeowners looking to upgrade into larger properties that have found it difficult to obtain buyers are finding interest in the buy to let market. It is a win-win situation for both the seller who finds a buyer and the investor who often gets an attractive deal on a rental property due to the seller becoming more aggressive to sell. The amount of properties on the market for sale has made it possible for investors to add quality properties to their portfolios that will presently bring in good renters and good income but later on will have a high return should the property be sold once the market recovers.

Lending in the buy to let market has been reported as being better in the last few months. This has allowed many more to either add to their portfolios or to invest in rental property. For those finding that the cost of investment properties is still out of their reach some have found good opportunities outside of the UK by taking advantage of the pricing and governmental programs in areas such as Spain and the US. It is definitely a good time for the buy to let market and if investors can take advantage now then analysts expect a long and prosperous outcome in the years ahead.

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The number of first time buyers coming into home ownership has fallen and recent data revealed that the average age of a first home buyer is 37 years of age.  Without the influx of first time buyers to the market the property ladder has become stuck.  There are no buyers for starter homes and homeowners wanting to find buyers so they can sell their current home and upgrade have found it difficult to do so with the supply of new buyers declining.

Recently the Housing Minister Grant Shapps held a summit meeting to discuss ways to bring new buyers into the market.  He brought industry lenders together to offer explanation and possible solutions to the issue of first time buyers being shut out of the housing market and home ownership.  It could be that the tides are shifting for first time buyers already as new mortgage products are coming to market.

Moneyfacts.co.uk has released recent information that shows some constriction in lending to first time buyers has been easing in recent months.  Slowly lenders have been reintroducing higher loan-to-value (LTV) mortgages into the market which is exactly what is needed as high deposit requirements have been one issue that has been specifically holding first time buyers out.

The released data showed that there were 214 mortgage deals available at 90 per cent LTV, which would require a 10 per cent deposit.  This is actually up from the number of 90 per cent LTVs that were offered in February 2010 which was 144.  There are even more deals available at 85 per cent LTV which involves a 15 per cent deposit.  There were 560 on the market and that is almost double the number of 85 per cent LTVs a year ago of 310.

Moneyfacts also reported that the rates on 90 per cent LTV mortgages were falling making them more attractive than in months past.  The current average rate on a two year fixed rate mortgage deal at 90 per cent LTV is 6.09 per cent which is lower than the 6.48 per cent offered a year ago.  On a 75 per cent LTV the average rate a year ago was 4.27 per cent and now the average is 4.03 per cent.

“Higher LTV mortgages are making a steady return to the mortgage market,” said Louise Holmes, spokesperson for Moneyfacts.co.uk.

“This will be welcome news to borrowers with small deposits, particularly first time buyers who have struggled to find products which meet their needs.”

“Over recent months some lenders have increased their rates and expanded their number of higher LTV deals, suggesting that the market could be returning to a competitive, rather than risk-based state.”

The fact that house prices have declined and mortgages with lower deposit levels are coming to market is a great sign for those hoping for home ownership.  It is estimated that there are 1.4 million households wanting to own a home so there is a large market for those wanting to find borrowers.  The housing market could use a boost and making mortgages obtainable is a good start in helping bring more first buyers to the property ladder.

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Buy to Let Advice - Tips on UK buying to let

Tuesday 22 February 2011

The 3 + 1 Plan: The Insider's Way to Achieve Financial Freedom with Just 4 Properties: Amazon.co.uk: Brett Alegre-Wood: Books

Product Description

Product Description

Property is the new Pension. Your pension is in danger, whether you know it or not. As worldwide pension funds lose value at a record rate, how can you be sure you will be able to provide for your family when you retire? The 3 + 1 Plan is a step-by-step guide that will show you how, with just four properties, you will be able to fund the lifestyle you have always wanted. Even before you retire. It's time to educate yourself financially. It's time to take back control and invest more intellingently. It's time to do more now rather than risking it all later. Showing you time-proven strategies that will safely guide you through any economic boom, bust, recession or downturn, the 3+1 Plan is more than just an answer to your failing pension. It IS your new pension. Not many would be brave enough to write a book about the property market in this economy. Brett Alegre-Wood has the tools for you to invest in any property market. He will show you how to structure your portfolio so market fluctuations will not touch you, teach you to make the right investment decisions and achieve financial freedom now and get the security of knowing you can retire in comfort.

About the Author

Brett Alegre-Wood is a property expert, property investor, opinion leader, blogger, educator and entrepreneur. His first book The 3+1 Plan: The Insider s Way to Achieve Financial Freedom with Just 4 Properties reached No. 1 on Amazon in Personal Finance within weeks of publishing and won The People s Book Prize 2010 in the non-fiction category. The book s overwhelming success has largely been due to providing an answer to the current pension crisis: that people don t have to rely on failing pension schemes or the government, instead they can fund the lifestyle they want when they retire with just 4 properties. Born and educated in Australia, Brett now lives and works in London. His passion for education has led him to build the largest free property investment education website in the UK www.YourPropertyClub.com, sharing insider secrets and time-proven strategies to tens of thousands of investors throughout the world. Brett is a trusted source of property investment tips to create secure and thriving portfolios. He writes an educational blog and weekly newsletter for his clients, presents numerous seminars and makes regular media appearances. He has been interviewed about his property outlook by GMTV, national British press and institutions such as The London Stock Exchange. Brett s second book Successful Property Investment: How to make money from buy-to-let property without the sleepless nights is due out at the end of 2010.

Successful Property Letting - How to Make Money in Buy to Let Right Way Plus: Amazon.co.uk: David Lawrenson: Books

Buy to let mortgage applicants' plight discussed by LettingFocus.com - Money News

uy to let mortgage applicants' plight discussed by LettingFocus.com


A source from LettingFocus.com has suggested the buy to let market is unlikely to get any easier this year.

David Lawrenson, private rented sector expert at the company, explained that the lenders who were bailed out by the UK government will need to pay back money soon.

As a result, he suggested the cost of signing up for a buy to let mortgage will not be cheaper.

Mr Lawrenson said: "I expect mortgage fees and the typical level of deposit required to stay high. And there is a pretty strong chance that the base rate will go up."

His comments were made in response to research by Paragon, which showed that four out of ten landlords saw tenant demand rise in the fourth quarter of last year.

This period was the sixth consecutive quarter to enjoy growth in this area, with the figure hitting a two-year high in the three months to December.

Click here for more mortgages newsADNFCR-323-ID-800418234-ADNFCR

Improved Lifestyle More Important Than Money For UK Small Businesses | MORE TH>N Newsroom

Improved lifestyle more important than money for UK small businesses

It’s ‘fambition’, not ambition, for UK small businesses
 ‘Meaning’, not money, is increasingly the order of the day as ageing population and world events take their toll
 Just 16% of small business owners said they started or run a business to ‘make lots of money’
When it comes to starting and running a business, the dream of riches seems to be a thing of the past. These days, business ambition has given way to ‘fambition’, which puts the spotlight firmly on lifestyle issues such as family time, time off and happiness, according to the MORE TH>N Business Foresight Index, which assesses trends in small business ambitions on an annual basis.
- 84% of small business owner managers said they started or run a business to get a better lifestyle
- Just 16% said they were in business to ‘earn lots of money’
This shift from ambition to ‘fambition’ is also demonstrated when small business owner managers consider the optimum future size of their business – on average, for most business owner managers, having four employees is classed as ideal.
The picture is very similar when growth plans are assessed. Although the Index shows that the average desired lifetime growth (based on number of employees) is around 54%, the real picture is far less ambitious. In fact, most small businesses clearly believe that they are already at or near their optimum size. On average:
- Sole traders only want to hire one member of staff
- Businesses currently employing a total of four people would only like to grow to five employees
- Small businesses currently with a total of with ten employees think eleven would be their ideal size
Grey future?
The ageing population in the UK could be one explanation for small businesses’ modest ambitions. The Index shows that the older the owner manager, the more lifestyle focused they are, with the desire to run a larger business gradually decreasing as people get older:
- In the 16-34 age group the ideal size of business is considered to be 10 employees
- In the 55-64 age group two employees is considered the optimum business size
The research also shows that owner managers get happier as they get older:
- Just 5% of 16-34 year olds are totally satisfied with the lifestyle their jobs offer and 8% are totally satisfied with the performance of the business
- In the 55-64 age group, those figures rise to 17% and 14% respectively
As the UK population continues to age, it is likely that this trend will continue, with money-driven entrepreneurs accounting for a shrinking slice of the small business market over time.
Home comforts
Psychologist and life coach, Dr Sally Ann Law, suggests that events such as the war in Iraq and global warming are also significant factors. She believes they are driving a fundamental shift in the way we view the world and our ability to influence our long-term future.
She said: “There is no doubt that recent significant world events have affected the way people think about themselves and their future. In response to the perceived inability to influence a lot of big issues, such as bird flu, terrorism and global warming, in the immediate future people often tend to cherish things like family and quality of life all the more. That is certainly reflected among many of the people that I see in my capacity as a life coach.”
Charlie Duggan from Bishopston, Bristol, has been running his own company, Charlie Duggan Associates (www.charliedugganassociates.co.uk) for just over two years. The company specialises in helping companies to plan and implement the outsourcing of selected parts of their recruitment processes. Charlie said: “Before setting up my own company in March 2004, I worked for a consultancy with a head office in London. As my responsibilities increased I found myself spending more and more time travelling up to London, which meant seeing less of my family in Bristol.
“In today’s volatile climate you tend to take stock of what is important, and to me my family will always come out on top. Running my own business has enabled me to enjoy more time with my family, use my strengths to their best ability and take control over my working life.”
MORE TH>N Business manager, Rachel Cotton, said: “There are more than a million small businesses in the UK run by people who put lifestyle first – the alterpreneurs – and they employ a further six million people. Another 179,692 small firms are run by people who fit more closely with the traditional idea of an entrepreneur.
“The fact that so many businesses in the UK are now driven by the desire to have a good lifestyle means that the type of support they require is likely to be quite different from support and services needed by more money and growth focused businesses. Organisations such as insurers, as well as the government, will have to take this into consideration and act upon it.”
Ends
Notes to editors

About the research
The research was carried out by Critical 2 amongst 825 business owner managers during February 2006.

Monday 21 February 2011

BBC News - Halifax to pay £500m to mortgage customers

21 February 2011 Last updated at 21:57

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Halifax to pay £500m to mortgage customers

Halifax branch Affected Halifax customers will receive an average of £1,666 each

The Halifax will make payments to 300,000 mortgage customers, up to a £500m total, after reaching a deal with the Financial Services Authority (FSA).

The bank, now part of Lloyds Banking Group, admitted confusing customers about its right to charge them more for their standard variable rate mortgages.

The Halifax raised the margin on some of these mortgages from 2% to 3% above base rate in January 2009.

Lloyds said its agreement had been a "voluntary" and "proactive" one.

"The group is committed to running its business with the highest levels of integrity and treating its customers fairly, and therefore believes that a proactive co-ordinated programme to identify affected customers and make goodwill payments is the appropriate course of action," Lloyds said.

Halifax said that some customers would receive a flat-rate payment of £250.

Others will receive a variable payment, related to the rise in their interest payment and the size of their mortgages. This could range from hundreds of pounds to several thousand pounds.

'Surprised'

The problem arose in the autumn of 2008 and early 2009 as the Bank of England progressively cut its official bank rate from 5% to 0.5% to help stave off the effects of the banking crisis.

The Halifax decided not to cut is standard variable rate (SVR) in step with the Bank of England, thus increasing its margin above base rate.

The Halifax admited that its mortgage offers issued between September 2004 and September 2007 had not been as clear as they could have been and had the "potential to cause confusion".

The lender had not made it clear that its terms and conditions meant it could later vary the charge for customers who went onto its standard variable rate.

The problem was first highlighted at the time by Ray Boulger of mortgage brokers John Charcol.

Continue reading the main story

Start Quote

It has been a very complex area, involving digging out lots of historical mortgage documentation”

End Quote Halifax spokesman

He had queried whether or not the Halifax had the right to change its SVR from a 2% margin over base rate to a 3% margin if the offer documentation, stating the key facts of the deal, had not explicitly mentioned the bank's right to do so.

"The issue was whether the terms under which the Halifax could vary the rate cap had been met," he told the BBC.

"I am surprised it has taken to so long to sort out."

Few complaints

Typically the affected customers were those whose mortgage deals reverted to the Halifax SVR once their fixed-term or tracker rate deal had expired.

The Halifax raised the ceiling on its SVR from bank rate plus 2% to bank rate plus 3% with effect from January 2009, citing "extenuating economic conditions".

This meant that some 300,000 customers at this point were charged more than would otherwise have been the case.

"We have had very few complaints - in the tens, fewer then 50," said a Halifax spokesman.

"It has been a very complex area, involving digging out lots of historical mortgage documentation," he added.

About 600,000 customers will be contacted by the Halifax, however, about 300,000 customers will not receive a payment as they were not paying the SVR on their mortgage during the period affected.

Those who were affected and who are still with the Halifax will have their mortgage accounts credited in April this year.

If they have left the Halifax they will be traced and offered a cheque.

BBC News - Libya unrest leads to rise in oil price

Libya unrest leads to rise in oil price
Burnt out car in Benghazi, Libya As violence has spread across Libya, European oil companies have begun to evacuate expatriate staff
Continue reading the main story
Related Stories

* Libya's oil wealth not trickling down
* Gaddafi regime shaken by protests
* Britain condemns Libyan violence

The price of oil has risen in response to the turmoil in Libya.

Brent crude had jumped 2.6% by late afternoon to $105.2 a barrel, its highest level since before the 2008 financial crisis.

European energy companies are evacuating some staff from the country, which is a major oil and gas producer for the European market.

Meanwhile shares in Italian oil firm ENI - which is active in Libya - ended Monday trading 5.1% lower.
Italian connection

The Italian company said on Monday that its operations were unaffected by the violence.

Italy buys about one-third of Libya's oil and gas exports, making it the country's biggest customer by far.

ENI has been buying gas from Libya for decades, and is at the centre of a close political relationship between the two countries, according to one analyst.
Continue reading the main story
Brent Crude Oil Futures $/barrel
Last Updated at 21 Feb 2011, 21:30 Brent Crude Oil Future twelve month chart
price change %
108.25 +
+5.73
+
+5.59

In 2008-09, the Libyan government had considered buying an up-to-10% stake in ENI, although the investment did not go ahead.

Some 13% of the company's revenues come from Libya, and 30% from North Africa as a whole, meaning the firm is highly exposed to instability in the region.

Although market concern about the firm is focusing on the short-term impact of the unrest, the analyst said there were also fears that a change in regime could lead to the Libyan assets of ENI and other foreign investors being expropriated.

Sunday 20 February 2011

Start Late, Finish Rich: A No-Fail Plan for Achieving Financial Freedom at Any Age: Amazon.co.uk: David Bach: Books

16 of 16 people found the following review helpful:
3.0 out of 5 stars Good Advice for U.S. Citizens in Their 30's and 40's, 10 Dec 2005

This review is from: Start Late, Finish Rich: A No-Fail Plan for Achieving Financial Freedom at Any Age (Hardcover)
I have not read any other books in this series, but the subject matter of this book appealed to me. I often run into people who (for various reasons) don't have much liquid wealth going into their 40s. Yet I haven't seen much written to suggest what these folks should do. I was hoping to get some ideas to share. Unfortunately, I didn't really find any that I didn't know about already.

If you are over 50, this book won't provide you with the advice you need. The intellectual process that Mr. Bach went through was to take the familiar arguments about the power of compound interest and saving with pre-tax dollars . . . and think of a few ways to shorten up the number of years required for compound interest to do its thing on your behalf. His best suggestions outside the standard financial planning advice are to be more valuable at work so you can earn more raises and promotions . . . and paying down your mortgage a little faster than is required.

I applaud his advice that people spend less on things that don't provide much benefit . . . but most people are going to be demoralized if that's the main source of increased liquid wealth. After all, most people want wealth not for retirement . . . but to enjoy life before and after they retire.

I found his arguments about starting your own business to earn more money to be naive at best . . . and overoptimistic at worst. Buying and running . . . or starting and running a business requires a lot of hard work and skill. Most successful entrepreneurs are off doing this by around age 35. Most people at 49 will find it a tough hill to climb. I applaud Mr. Bach's suggestion that people look into buying, operating, expanding and then selling franchised operations that meet his criteria. The other ideas won't work for most people based on historical averages.

I was also puzzled by his emphasis on having one-third of your liquid financial wealth in bonds. That's been one of the lowest returning classes of investment over the last 150, 100, 50, and 25 years. Why deliberately earn less when you have a long time horizon?

Much of the appeal of this book is that Mr. Bach is optimistic by nature, has a kindly interest in people and aspires for people to accomplish more. Bravo for that attitude!

I also found that Mr. Bach uses quantitative examples to explain compound interest and pre-tax versus after-tax investments much better than most financial planners do.

If you are under 45 and have never read a book about financial planning before, you will find this to be a valuable resource. If you are familiar with financial planning, you can skip this book. If you are not inclined to plan, don't know anything about financial planning and find math to be challenging, this book will provide useful new perspectives for you.


Am I too Late to Start a Pension? - Money Sheets (UK)

People in their forties, fifties and sixties often start to grow increasingly concerned that they haven’t made any savings for their retirement. So is it ever too late to start a pension?

The simple answer is that whatever your age, if you do not have anything set aside other then the state pension provided by the Government, then now is the time that you should start.

Why Should you Start?

If you think that you are too late and that it is not worth setting up a pension, consider the following facts.

It is estimated that over a quarter of the UK’s working population have no pension arrangements apart from the Basic State Pension and the State Second Pension.

More worryingly, over the past two decades, the value of the Basic State Pension has shrunk in comparison with average earnings. The current state pension is just £90.70 a week for a single person, and £145.05 a week per couple.

There’s a genuine concern that living off the Basic State Pension will leave most pensioners below the poverty line. Whatever your financial situation, whatever your age, if you can make contributions into a pension you should do so as soon as you can. Otherwise you may be forced to live a very uncomfortable old age.

On the positive front, there are a some pension options for you to consider.

Company Pensions

If you are still in employment you should start by thinking about whether you have the option of joining your company’s pension scheme. The set-up costs for occupational pensions are usually a lot cheaper than doing it yourself, and in many cases the employer also makes a contribution to your pension fund.

The drawback of paying into a company pension is that your pension contributions will be limited to around 15 percent of your total salary each year, so if you are facing a serious shortfall in your pension planning, you might need to think about either alternative ways to top up your investment.

Some insurance companies allow you to purchase free-standing Additional Voluntary Contributions (AVCs) that can be added to your pension pot.

Personal Pensions

If a company pension scheme s not an option, you should consider setting up your own personal pension plan, or self-invested personal pension (SIPP). There are a wide variety of different investment funds that you can choose, and they all have different risk/return profiles.

Most personal pension funds look to increase their weighting in lower risk assets, such as government bonds, corporate bonds and cash, as the investor gets closer to the retirement date.

Saturday 19 February 2011

Zero-sum World: Power and Politics After the Crash: Amazon.co.uk: Gideon Rachman: Books

Product Description

The economic crisis that struck the world in 2008 has drastically altered the logic of international relations. Globalisation no longer benefits all the world's superpowers and they face an array of global problems that are causing division between nations. A win-win world is giving way to a zero-sum world. Zero-sum logic, in which one country's gain looks like another's loss, has prevented the world from reaching an agreement to fight climate change and threatens to create a global economic stalemate. These new tensions are intensified by the emergence of dangerous political and economic problems that risk provoking wars, environmental catastrophe and ever-deeper debilitating economic crises. This timely and important book argues that international politics is about become much more volatile - and sets out what can be done to break away from the crippling logic of a zero-sum world.

Why The West Rules – For Now: The Patterns of History and what they reveal about the Future: Amazon.co.uk: Ian Morris: Books

The Rise and Fall of the Great Powers: Economic Change and Military Conflict from 1500-2000: Amazon.co.uk: Paul Kennedy: Books

8 of 8 people found the following review helpful:
5.0 out of 5 stars Remembering the past, seeing the future..., 27 Dec 2005

This review is from: The Rise and Fall of the Great Powers: Economic Change and Military Conflict from 1500-2000 (Paperback)
History is a wonderful study, a professor of mine once commented, of the interlocking circles of influence, whereby one can find often that an obscure arranged marriage in the Dark Ages could be responsible for a thermonuclear exchange or a hostile corporate takeover today.

Of course, he was exaggerating, but only by a matter of degrees. History is the study of the interconnexions of human beings in their actions over time, and to that end, the more we understand of the past, the better chance we have of surviving and flourishing into the future.

Paul Kennedy's book, The Rise and Fall of the Great Powers is an insightful, sweeping examination of the centuries of the growth and dominance and, lately, relative decline of the European powers over the rest of the globe. To a lesser extent (because they were lesser players) he draws in Asian, and finally, American players, although as will be seen, they began to play the game according to the European rules.

He pays particular attention to the economic and military aspects of the motivations of national and ethnic decision-making; so often history (or at least popular history) has portrayed such as purely political, religious (at least until the last few centuries), or royal-family intrigues. Kennedy explores the forgotten aspects in a popular format; hence the question (as the Gulf War is almost universally recognised as, in reality, a war of economic necessity rather than for political or moral purpose, which tended to be added later)--were the Hapsburgs responsible? Rather, that is a way of asking, are the same motivations that were at play with Great Power relationships in 1500 still at play today? Have we learned anything?

At the beginning of 1500, it was by no means certain that Europe would become the dominant region of powers in the world. China was in decline but still perhaps the greatest power. Empires in India, Japan, and around Muscovy were also contenders. To their detriment, however, each of these powers tended to be isolated and introspective, more concerned with internal consistency and preservation of 'a way of life', whereas the smaller European powers had to compete with each other, and adapt and improve to survive. 'This dynamic of technological change and military competitiveness drove Europe forward in its usual jostling, pluralistic way.'

Occasionally, Europe tended toward the Asian models, particularly with the dominance of the Hapsburgs who, at their height, controlled much of Europe and began to insist on the same kinds of religious, historical, mercantile and cultural conformity that cost the other empires their vitality.

Great power struggles that occurred between 1660 and 1815 are difficult to characterise briefly, but chiefly is marked by the emergence of a cluster of powerful states which came to dominate diplomacy and militarily. After the Napoleonic era, there was a lull in Great Power warfare, until this century, when even the flank powers of Britain and Russia were a bit too central to the conflicts to survive with both military and economic strength intact.

'Given this book's concern with the interaction between strategy and economics, it seemed appropriate to offer a final (if necessarily speculative) chapter to explore the present disjuncture between the military balances and the productive balances among the Great Powers; and to point to the problems and opportunities facing today's five large politico-economic power centres...as they grapple with the age-old task of relating national means to national ends. The history of the rise and fall of the Great Powers has in no way come to a full stop.'

These Kennedy identifies as The United States, Japan, the EEC, the Russian States, and China. Of course, this has the possibility of shifting, too, as countries such as India and Brazil acquire more military and economic strength; countries such as Indonesia that are resource- and population-rich could also achieve Great Power status before long (historically speaking).

Kennedy pays homage to the Prussian historian Leopold von Ranke, who wrote about die grossen Mächte in 1833, following since the fall of Spain. von Ranke also produces speculative chapters; perhaps it is natural for historians to want to chart the course of the future as well as mapping out the past.

This book reads like an epic, but is generally accessible (though somewhat intricate) and gives interesting insights, and is significant for what is does not address (many political scientists and historians will find some major theories ignored) as well as for the fresh approaches it does employ. Best read with other history books.


Maclean’s Interview: Neil Strauss - The Interview - Macleans.ca

Maclean's Interview: Neil StraussNeil Strauss is a former music critic for the New York Times and bestselling author. In his new book, Emergency: This Book Will Save Your Life, Strauss describes how he grew up believing that America was the greatest country on earth until he lost faith in the Bush government and began to fear another terrorist attack. He set out to learn how to shoot a gun and hunt for food. Along the way, he met wacko survivalists and a New York billionaire, who urged him to get out of the U.S. Strauss went so far as to acquire a second passport.

Q: Your book is, in a strange way, like a self-help book, “How to Survive the Apocalypse.” About halfway through, you make the statement, “It’s a strange time to be an American,” and I thought that’s it—that’s the whole nut of the book, right?

A: Yes, that’s a great question because that’s what the entire book came out of, people being born in the ’70s and ’80s, who grew up with a silver spoon in their mouths. America was the lone superpower. All the problems of the world seemed to happen to other people. It seemed like the future was this bright, shiny, optimistic place where anything was possible.

Then, starting with 9/11, all of a sudden everything we thought couldn’t happen to us, happened to us. We had an act of war occur on American soil which hadn’t happened since Pearl Harbor. We had this constitution, which is kind of a holy relic, which makes us the best, freest country in the world, all of a sudden open to interpretation, and these things could change in the name of national security.

Q: And then there was hurricane Katrina.

A: Right. I think that was the real turning point. Katrina wasn’t like 9/11. They knew a disaster was going to strike and even then with advance notice they still couldn’t help anyone. You never think you’re going to see bodies floating in the street, ignored in America. That’s when I realized . . .

Q: You’ve got to look after yourself?

A: Exactly.

Q: You collected anti-American souvenirs for a while. Do you remember the first item in your collection?

A: I think it was the postcard in Belgrade of the Serbian soldier pissing on the American flag and saying “Oh, what a feeling.” I kept finding these things and it was sort of shocking to see the American flag, for example, desecrated by people.

Q: But you didn’t take their hate seriously at first. You said that you collected propaganda “in much the same way a singer confident in his talent makes a collage of bad reviews by hack writers and hangs it on his wall with pride.”

A: You can see hostile postcards about America and you’re okay with that. You say, well, that’s their problem. They’re just resentful. But then when you see someone actually beheaded for being an American, then you’re like, whoa, that’s serious.

Q: You write that hope can make us blind and vulnerable.

A: I think that’s very true. Even if you separate hope from politics, and look at relationships, probably every one of us has female friends who stay in these horrible relationships because they hope the guy is going to recognize their value and love them and treat them like they deserve to be treated and they cling on to .01 per cent of hope. I think hope is an emotion that sometimes causes us to cling to things we should really let go of.

Q: That’s interesting since you’ve just elected a president whose whole platform is hope. Do you think Americans are too hopeful right now?

A: You can’t tell the future. That’s why I wanted backup plans. I think everyone’s very pessimistic now. You’re at the gas station paying three times as much as you used to pay, and the house you bought for $500,000 is now worth $350,000, and you’re still paying the mortgage on it. I think maybe people have hope, but they’re hurting.

Q: You mention Paul Kennedy’s book, The Rise and Fall of the Great Powers. Do you really believe the crumbling of the American empire is an inevitable fate?

A: Yes, I think if you read Paul Kennedy’s book, you see that the writing is on the wall for America. He makes the argument that America is on its last legs as a superpower but that doesn’t mean if the great empire falls, everybody dies and it’s the sack of Rome. When Britain ended as an empire, it didn’t mean Britain was wiped out.

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Friday 18 February 2011

Inflation running at 2% above Bank's target | This is Money

This is Money: Be your own financial adviser - predictions, advice & tips

Petrol still rising despite falls across Europe | This is Money

Petrol still rising despite falls in Europe

Filling stations are ripping off motorists, according to research released today.

The AA motoring group accuses retailers of failing to pass on a fall in wholesale petrol costs, which saw prices in Europe dip 4.4% in January to 121p a litre.

Britons, by contrast, saw a 1.18% increase to 129p.

Unleaded petrol yesterday hit a record £5.86 a gallon while diesel was also in uncharted territory at £6.10 a gallon, or 134p a litre.

It means filling up the 70-litre tank of a family saloon now costs £90.20 - compared with £78.47 a year ago.

The AA said that even though wholesale costs have started to rise again, European prices are 3% lower than three weeks ago, compared with 0.8% higher in the UK.

It also accused supermarkets of operating a charging lottery, where prices in neighbouring towns can vary by 4p a litre.

It said Asda was an honourable exception with a national pricing policy and low prices.

AA president Edmund King said: 'Whether retailers are trying to compensate for lower volumes of sales or supermarkets are choosing to convert fuel-cost savings into cut-price toilet cleaner offers is irrelevant.'

European fuel retailers, including France with its aggressive supermarket pricing, are under similar strains yet they passed on much of the wholesale petrol price reduction. They also reduced diesel prices for a while.

'It is time that the retailers recognised that greater price transparency will protect their interests, as well as those of consumers and the Government.'

Wednesday 16 February 2011

Personal finance and money news, analysis and comment | Money | guardian.co.uk

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Saga points out issue affecting retirement calculator customers

Wed 16th Feb 2011

The financial situation of over-50s in the UK has been highlighted by Saga, with a source from the firm pointing out how their plight affects their capability to save for retirement.

Tuesday 15 February 2011

CV Basics: Your Questions Answered

CV Basics: Your Questions Answered

Q: Does a CV always need to be only one page?

A: CV length should not exceed two sides of A4 paper. How much of those two sides you fill depends on how much you have done. Undergraduates and school leavers may be hard pushed to fill two sides of A4 simply because they may not have very much experience, if this is the case one side of A4 will suffice. Conversely candidates who have established a career history will have to be selective as to what they include so that it all fits on, in this case make sensible use of margin and paragraph sizes.

Q: Should the education section always be near the top?

A: If you still are in or have recently completed formal education your academic achievements will form a major part of your qualifications, and it is recommended to place these near the top of your CV. Also some industries, notably communications, value related experience above degree work and therefore, place your academic qualifications further down the page.

Q: Is an objective always necessary?

A: No, it is not crucial, however an employer will be impressed if you have a focused idea of where you want your career to be heading, especially if it is in line with their planned development.

Q: What if I haven’t done very much to fill up my CV?

A: This does not matter, everyone has to start somewhere, if sparse content is a problem use sensible formatting and fonts so that you comfortably fill one side of A4.

Q: Do hobbies and personal interests need to be shown?

A: It is not imperative to show your interests however it can provide an employer with an insight into your personality. This will undoubtedly be covered at interview so the more you can prepare them the better.

Q: Must references be included?

A: It is advisable not to include references as part of your CV. A small note stating that ‘References available on request’ will be sufficient.

Q: What should be on my CV?

A: Contact details, nationality, an introduction, previous employment history, academic qualifications, hobbies and interests.

Q: What shouldn’t I put on my CV?

A: Religion, references, sexuality, why you left your previous jobs, all your school grades, a photo, lies.

Q: Do I have to include all of my exam results?

A: No, just the most recent and a summary of your A-Level, GCSE qualifications will be enough unless they are specifically relevant to the job you’re applying for.

Q: In what order do I list information?

A: Contact details at the top, a brief introduction, employment history, education, interests, and hobbies.

Q: What sort of paper should I print it on?

A: The best quality that you can get your hands on, but use common sense, do not get paper that is too thick.

Q: In what format should I save my CV?

A: Most recruiters have MS Office applications, and so a Word document will be suitable. PDF files take up more memory, but if you are applying for design industry jobs and have a highly stylised CV then this could be the best format.

Q: How can I ensure that my CV will be read?

A: CVs usually aren’t read at first, they are scanned. With that in mind you should build your CV to be easily scanned by sight:

  • Present information in concise, compact statements. Avoid large blocks of text.
  • Organize your information so that the reader doesn’t have to hunt for your skills.
  • Use fonts and text styles consistently to provide visual structure to your document.
  • Leave plenty of white space so it isn’t cluttered.
  • Sprinkle industry buzzwords and use fresh, positive language.
  • Leave irrelevant, unnecessary or inappropriate information off your CV.

Q: Do I need more than one CV?

A: Construct a ‘core CV’  guide then configure that to the recipient each time you send it out.

Q: How far back should I go with the information I put on my CV?

A: Ten years is a maximum. Go back further and you run the risk of rambling on with irrelevant information. However, there are certain situations in which experience from more than ten years ago may be advantageous to show on your CV. In this case, it is usually a good idea to taper the descriptions of your experience as you work back (making entries less detailed). Another option may be to find another way to show experience or qualification from more than ten years ago.

Related posts:

  1. Interview Questions: Why don’t you tell me about yourself? In today’s workplace it’s very important for employers to recruit...
  2. How hobbies and interests can boost your CV In the jobs market where it’s vital to do whatever...
  3. Typical interview questions and best responses – Part 2 View part 1 In the last article we looked at...
  4. How to write a CV that inspires employers Before you write a bog standard, uninspiring Curriculum Vitae (CV),...
  5. Interviews: the questions an employer SHOULDN’T ask you We all get so worried about the interview process –...
| More

Vince Vince 17 November 2010 Career advice

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